ICICI Prudential Life Launches New ULIP Fund Focused on Value Investing

ICICI Prudential Life Insurance has launched the ICICI Prudential Life BSE 500 Enhanced Value 50 Index Fund, a new investment option for its Unit Linked Insurance Plans (ULIPs). The fund adopts a value-based, rule-driven strategy to invest in fundamentally strong companies that appear undervalued. It tracks the BSE 500 Enhanced Value 50 Index, which comprises 50 companies selected from the BSE 500 universe based on metrics like earnings-to-price, book-to-price, and sales-to-price ratios. This systematic approach ensures diversification across market caps with low tracking error. Historical data shows the BSE 500 Enhanced Value 50 Index has outperformed the BSE 500 index in 12 out of the past 19 years, suggesting the effectiveness of its disciplined value strategy. Manish Kumar, Chief Investment Officer at ICICI Prudential Life, highlighted that the fund offers ULIP investors a simple, transparent method to participate in India's growth. ULIPs themselves provide long-term savings, life cover, and potential tax benefits. The fund will be available across various ICICI Prudential Life ULIP products.

**Impact**: This launch is significant for ULIP investors seeking value-oriented, passive investment options. It could drive inflows into these ULIPs and indirectly support the underlying stocks in the index. It also reflects a growing trend towards index-based strategies in India. **Rating**: 6/10

**Difficult Terms**: * **Unit Linked Insurance Plans (ULIPs)**: Insurance products combining life cover with market-linked investments. * **Value Investing**: Strategy of buying undervalued assets. * **Intrinsic Value**: The true worth of an asset, independent of market price. * **Earnings-to-Price Ratio (E/P Ratio)**: Measures earnings yield relative to stock price. * **Book-to-Price Ratio (B/P Ratio)**: Compares company's book value to its market price. * **Sales-to-Price Ratio (S/P Ratio)**: Compares company's sales to its market price. * **Passive Investment**: Strategy mimicking a market index. * **Tracking Error**: Fund's deviation from its benchmark index. * **Reconstituted Quarterly**: Index components reviewed and updated every three months.